Federal regulators on Tuesday announced penalties exceeding $1.2 billion against Bank of America for violations of the Bank Secrecy Act and anti-money laundering (AML) regulations. The U.S. Department of the Treasury stated the penalties address the bank’s failure to establish an adequate AML program and to report over $5 billion in suspicious transactions.
According to a press release from the Treasury Department, Bank of America admitted to willfully violating the Bank Secrecy Act. The department’s Financial Crimes Enforcement Network (FinCEN) detailed that the bank failed to conduct required due diligence on foreign correspondent accounts and did not file necessary suspicious activity reports in a timely manner. The Treasury noted that over $1 billion of the unreported activity was linked to high-priority national security risks, including Chinese money-laundering networks.
The total penalty amount of $1.21 billion resolves actions by both FinCEN and the Office of the Comptroller of the Currency (OCC). The OCC, an independent bureau within the Treasury Department, imposed a $750 million civil money penalty, which will be credited toward the total amount. The OCC stated this represents the largest civil penalty it has ever issued against a bank. A separate $11.6 million settlement was also announced to resolve sanctions violations.
“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” Treasury Secretary Scott Bessent said in the department’s announcement.
The OCC’s action cited the bank’s failure to correct deficiencies identified in a 2024 cease-and-desist order. In its own release, the OCC said the bank demonstrated a “poor response to its BSA deficiencies” and that its compliance program “continues to reflect widespread breakdowns in internal controls.”
Comptroller of the Currency Jonathan Gould stated, “The bank’s poor response to its BSA deficiencies is unacceptable. The second largest bank’s egregious and continued BSA violations warrant the OCC imposing its largest [civil money penalty] ever assessed against a bank.”
In a statement provided to news outlets, Bank of America acknowledged the penalties and its compliance obligations. “Financial crime compliance is serious, and we are responsible for getting it right,” said spokesperson Christa Robinson.
The bank confirmed it will take a $1.2 billion non-tax-deductible charge in its third-quarter financial results, which it said will reduce net income by approximately 17 cents per share. The statement also noted the bank has invested significantly in its compliance programs and that remediation efforts are underway.
As part of the settlement, Bank of America is required to have a third party conduct a review to identify suspicious transactions that were not previously detected. The bank must also undergo independent reviews of its transaction-monitoring and customer due-diligence programs. Following the announcement, the bank’s stock price declined in after-hours trading.
